• Relief from Chronic Fuel Shortages in Nigeria
• Refinery to Address Fuel Supply Challenges
• Other Massive Projects along side the Refinery Project

Nigeria has unveiled Africa’s largest oil refinery, owned by business magnate Aliko Dangote, in a significant step toward addressing the country’s chronic fuel shortages. Nigeria, a major oil producer, has long grappled with the paradox of exporting crude oil while heavily relying on imports for refined fuel. The new $19 billion refinery, yet to commence operations, aims to change this landscape and alleviate the nation’s fuel challenges.

President Muhammadu Buhari expressed optimism about the refinery’s potential impact, stating, “This is a game-changer for the Nigerian people.” With a daily production capacity of approximately 650,000 barrels of petroleum products, the facility is well-equipped to meet the nation’s fuel requirements. In addition to the refinery, the project includes a power station, deep seaport, and fertiliser plant, reflecting a comprehensive approach to infrastructure development.

Nigeria’s existing refineries have remained non-operational for over three years due to issues such as oil theft, pipeline vandalism, and neglect. Consequently, the country has struggled with persistent fuel shortages, affecting various sectors and hindering economic activities. The inauguration of Dangote’s mega refinery brings renewed hope for Nigerians who have long endured the consequences of inadequate fuel supply.

The refinery’s potential impact extends beyond fuel availability. It holds the promise of transforming lives and businesses across the nation. A young hairdresser from Lagos highlighted the struggles faced during fuel scarcity, remarking, “Every time there is fuel scarcity, I don’t open my shop because there’s no light [electricity] to work, and I can’t buy fuel for my generator.” The operational refinery has the potential to address such challenges and create a more stable environment for businesses and individuals.

However, questions remain regarding the refinery’s impact on fuel prices in a country where retail prices are subsidized. The Nigerian government has indicated plans to remove these subsidies, which accounted for a significant portion of the national budget in the previous year. The transition away from subsidies may bring uncertainties in the short term, as discussions around pricing mechanisms and market dynamics continue.

Aliko Dangote, during the launch, expressed his aspirations for the refinery’s success, stating, “Our first goal is to ramp up production of the various products to ensure that within this year, we are able to fully satisfy the nation’s demand for quality products.” As the largest single-train refinery in the world, Aliko Dangote’s plant in Lagos marks a significant milestone in Nigeria’s industrial development. The construction of the refinery took nearly seven years, and its completion is one of the final major projects to be inaugurated by President Muhammadu Buhari, who is concluding his two-term presidency.

While the inauguration of the refinery is undoubtedly a technical achievement, some experts suggest that it also carries political significance. Oil and gas expert Henry Adigun pointed out that Monday’s launch had a political undertone, coinciding with the upcoming transition of power from President Buhari to Bola Tinubu, the winner of the disputed presidential elections held earlier this year.

Beyond the political context, the refinery holds immense potential for Nigeria’s economy and energy sector. The facility’s integrated distillery system allows for the production of various products and petrochemicals, streamlining the refining process. With a capacity to produce 650,000 barrels of petroleum products per day, the refinery has the potential to not only meet Nigeria’s domestic fuel demands but also create a surplus for export, contributing to the country’s economic growth and reducing reliance on imported refined fuel.

Furthermore, the project’s accompanying infrastructure, including the power station, deep seaport, and fertiliser plant, further underscores the comprehensive approach taken to address Nigeria’s energy and industrial needs. These additions have the potential to stimulate economic activities, boost job creation, and enhance the nation’s self-sufficiency in multiple sectors.

However, challenges remain, particularly regarding the pricing of fuel. Nigeria has historically subsidized retail fuel prices, but the government has expressed intentions to remove these subsidies. The exact impact on fuel prices and how it will affect consumers and businesses is yet to be determined. Discussions around pricing mechanisms, market dynamics, and the potential consequences of subsidy removal continue to shape the future of Nigeria’s fuel industry.

Despite the complexities and uncertainties, the opening of Africa’s largest oil refinery represents a significant milestone for Nigeria. It signals the country’s commitment to industrialization, energy self-sufficiency, and economic growth. As the refinery transitions from construction to full-scale operation, all eyes will be on its performance and the tangible benefits it brings to Nigerians in terms of improved access to fuel, reduced shortages, and enhanced economic opportunities.

The successful operation of the refinery would not only alleviate the daily struggles faced by individuals and businesses but also position Nigeria as a major player in the global refining industry. It showcases the country’s potential to leverage its abundant oil resources for domestic development and economic diversification. The opening of the refinery serves as a reminder of the importance of strategic investments in critical infrastructure and the transformative power they hold for nations striving for progress and prosperity.

• Match Group to pull out of Russian market over human rights concerns
• Owner of Tinder and Hinge sets example for other Western firms
• Europol highlights dating apps as potential tools for human trafficking
• Match Group faces negative impact on European business
• Shareholder praises Match Group’s decision to prioritize human rights

Match Group, the parent company of popular dating apps such as Tinder and Hinge, has announced that it will be withdrawing from the Russian market by June 30, 2023. The move is in response to concerns over human rights violations and negative impacts on its European business.

“We are committed to protecting human rights,” Match Group said in an annual impact report published on Monday. “Our brands are taking steps to restrict access to their services in Russia and will complete their withdrawal from the Russian market by June 30, 2023.”

The decision comes as many Western digital services providers, such as Spotify and Netflix, have already pulled out of Russia due to Moscow’s military campaign in Ukraine. Dating apps have also been flagged as potential tools for human trafficking, drawing attention to the plight of Ukrainian refugees.

Match Group has made few public statements about its Russian operations, but negative impacts on its European business were flagged in March 2022. Shareholder Friends Fiduciary Corp praised Match Group for setting an example for other Western firms in tying its decision to the human rights risks faced by the Ukrainian people.

Jeff Perkins, executive director at Friends Fiduciary, told Reuters that a business that trades on trust had good reason to leave Russia: “It’s not a good look for a trusted brand to be continuing operations in a nation where the head of state has been indicted by the International Criminal Court.”

The ICC issued an arrest warrant on March 17 against Russian President Vladimir Putin, accusing him of the war crime of illegally deporting hundreds of children from Ukraine. Moscow denies committing war crimes, including forced deportations of children, and says the ICC decision is meaningless as Russia is not a member.

Match Group’s decision to withdraw from the Russian market underscores the importance of human rights considerations in business operations. It also highlights the potential risks associated with operating in countries where political instability and conflict may impact the safety and security of both individuals and businesses.

We earlier published that the biggest cryptocurrency exchange in the world, Binance, announced on Monday that all user balances and new deposits of the stablecoins USD Coin, Pax Dollar, and True USD will be automatically converted into Binance USD….continue reading

• • Chinese manufacturing contraction leads to oil price drop
  • US interest rate hike concerns add to downward pressure
  • OPEC+ supply cuts fail to offset negative sentiment in the market

Oil prices dropped on Monday due to weak economic data from China and expectations of another US interest rate hike. Brent crude, the international benchmark for oil prices, fell $1.02, or 1.3%, to settle at $78.45 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude slid $1.12, or 1.5%, to settle at $75.66.

China’s manufacturing activity unexpectedly contracted in April, according to official data released on Sunday. It was the first contraction since December in the manufacturing purchasing managers’ index. “The market is highly dependent on what happens to China, and the most real time news from the manufacturing sector was a disappointment,” said Third Bridge analyst Peter McNally. China is expected to be the biggest factor driving oil demand growth this year.

Furthermore, the US Federal Reserve is expected to increase interest rates by another 25 basis points at its meeting on May 2-3. The US dollar rose against a basket of currencies, making oil more expensive for other currency holders. “We continue to be at the mercy of sentiment surrounding a Chinese recovery or the lack thereof, while the backdrop in the US of ongoing monetary tightening leaves us in the ‘bad is good’ realm when it comes to economic data or newsflow,” said Kpler analyst Matt Smith.

In addition, fears surrounding the banking sector have weighed on oil prices in recent weeks. US regulators seized First Republic Bank over the weekend ahead of a deal in which JPMorgan bought most of its assets.

Despite voluntary output cuts of around 1.16 million barrels per day by members of the Organization of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, that will take effect from May, oil prices were unable to rise.

Oil prices did receive some support from US manufacturing activity which improved slightly in April, with new orders and employment rebounding. “Crude prices are paring losses on optimism the economy can strengthen now that banking drama is behind us and on signs factory activity is improving,” said OANDA analyst Edward Moya.

Overall, the negative sentiment in the market regarding Chinese economic data and US interest rate hike concerns outweighed any support from OPEC+ supply cuts.

Subsequently, oil prices continued to be under downward pressure, and the market remains highly dependent on future news regarding the manufacturing sector in China and the US Federal Reserve’s monetary policy.

Earlier we published that Exxon Mobil Corp has resumed its operations in Nigeria after resolving a labor dispute with its in-house union. The dispute had forced Exxon to declare force majeure on oil liftings at its terminals in the country…continue reading